Deadline: 12-May-23
The United Nations Capital Development Fund (UNCDF) is inviting applications from registered entities that can collaborate with Local Governments and the Ministry of Energy and Mineral Development (MEMD) and Ministry of Finance, Planning and Economic Development (MoFPED PPP-Unit) to design, install, operate, and maintain two solar mini-grids in the districts of Mpigi, Mukono and Wakiso.
In Uganda, UNCDF supports the implementation of the Programme on Integrated Local Finances for Sustainable Urban Development in the Greater Kampala Metropolitan Area (PIFUD). PIFUD aims to strengthen urban governance as well as prosperity and innovation in cities. In demonstration of the Public Private Partnerships (PPP) as alternative sources of capital, the programme will allocate financing for at least two solar mini grids to be established in partnership with the host Local Governments (LGs) and private sector within the GKMA. The grids are expected to generate at least 100 KWp and connect at least 300 households, deliver local economic development impact in the locality and ensure revenue flow to the private actor as well as the LGs.
Scope of Work
- Through this activity, an integrated small-scale off-grid solar mini-grid energy system will be developed with a private project developer and local communities, approved by the users and technical and financial sustainability is demonstrated for scaling up. The pilot of two (2) solar-based mini-grids in the GKMA area is equally targeting fishing communities overlooking the lakefront without access to grid electricity.
- The intervention means these communities will be empowered to participate in the formal economy of the city by giving them access to sustainable energy. By bringing the private sector on board, the intervention will act as a test lab for a sustainable public-private partnership business model for bringing energy to underserved communities. The UNCDF’s financial models, with proven positive results, will be applied to ensure the programme is self-sustaining and is able to be scaled up in other locations.
Areas of intervention
- The proposed sites by the Local Governments are Katikolo and Koome in Mukono municipal and district respectively, Buyiga in Mpigi and Bussi Island in Wakiso. However, project developers are not limited to these sites as long as they are within the Greater Kampala Metropolitan Area. The Project developer in collaboration with the LG shall:
- Conduct an initial feasibility study of proposed sites to assess the viability of the minigrid opportunity including existing and potential for electrification.
- Apply for the required permits and licenses in line with the ERA and NEMA regulations and standards.
- Design and construction of the distribution and connections in coordination with Ministry of Energy and Mineral Development especially the Rural Electrification programme.
- Develop and execute the proposal for increasing demand including community engagement, productive use of energy such as business hubs, e-mobility, and equipment financing.
- Propose a revenue-sharing model clearly stating the parties involved and how the revenue will be shared amongst the parties.
- Design, procure, and install mini-grid equipment and appliances.
- Operate and maintain the solar mini-grid for a stated period of time based on the agreements with Local Governments.
- Document and share lessons learnt about the PPP modality and other aspects of the implementation of the solar mini-grid.
Funding Information
- UNCDF’s contributions can range from USD $150,000 – USD $300,000 , and UNCDF will award up to 2 proposals depending on the investment readiness level and outreach potential of the solution proposed and 80% of this contribution will be towards capital investment.
- Duration: Projects are expected to have a 12 months duration.
Expected Results
- Through this RFA, they expect to get atleast 2 solar mini-grids, generating atleast 100 KWp and ensure connections to atleast 300 householeds in the GKMA area.
- Targets must be disaggregated for the selected target groups applicants who are not able to report on one or multiple indicators or provide disaggregated data should include a note with the reason. This may include additional indicators and targets, tailored to the scope of the proposed solution, activities and expected results.
Eligibility Criteria
- The applicant must be a for-profit private company including social enterprises registered in Uganda with at least three operating year experience. For profit arms of not-for-profit organizations (NGOs) can also apply.
- The applicant (project developer) should have experience in developing, deploying and operating and maintenance of mini-grids and productive use of energy applications in Uganda.
- Relevant operation licenses (when applicable)
- The lead applicant must have a certificate of incorporation and trading license to carry out business in Uganda.
- The lead applicant should be a member of the renewable energy industry association in Uganda.
- Country of operation: The applicant must be duly registered with physical presence and having at least one year of operations in Uganda.
- Project funding
- Applicants must contribute at least 40 percent of the project’s total cash costs (costs may include technical infrastructure, resources, and operations).
Exclusionary Criteria
- Applicants shall not have been the subject of bankruptcy, liquidation, judicial settlement, safeguarding, cessation of activity or any other similar situation resulting from a similar procedure.
- Applicants and any of their staff or member of their board of directors shall not be included in the United Nations financial sanctions lists, particularly in the fight against the financing of terrorism and against attacks on international peace and security; and
- Applicants must not be involved in any of the following activities:
- Manufacture, sale or distribution of controversial weapons or their components, including cluster bombs, anti-personnel mines, biological or chemical weapons or nuclear weapons
- Manufacture, sale or distribution of armaments and/or weapons or their components, including military supplies and equipment o Replica weapons marketed to children
- Manufacture, sale or distribution of tobacco or tobacco products
- Involvement in the manufacture, sale and distribution of pornography
- Manufacture, sale or distribution of substances subject to international bans or phase-outs, and wildlife or products regulated under the CITES
- Gambling including casinos, betting etc. (excluding lotteries with charitable objectives)
- Violation of human rights or complicity in human rights violations o Use or toleration of forced or compulsory labor
- Use or toleration of child labor
- Applicants shall have fullfilled all the obligations relating to the payment of social security contributions or obligations relating to the payment of taxes in accordance with legal provisions in force in the country of incorporation.
- UNCDF will conduct due diligence on selected applicants must have documents ready for confirmation that they meet the eligibility criteria including certificate of compliance with the tax authorities and any other documentary evidence that might be requested by UNCDF besides the application form.
For more information, visit UNCDF.
